The preliminary estimate of the University of Michigan consumer confidence index unexpected dropped in March to the lowest level since last October. The headline index dropped from 77.5 to 68.2. But by far the worse drop was in the expectations of the future, which plunged from 58.3 to 71.6.

So what does plunging consumer confidence in the future mean for businesses, investors and consumers?

Municipal-bond prices fell Monday as we entered into one of the largest issuance weeks this year. The weakness in the face of increased supply may indicate that there is still a lot of nervousness about the muni market.

The $20 billion loan JPMorgan Chase is providing to AT&T to finance the $39 billion acquisition of T-Mobile USA has raised a lot of eyebrows on Wall Street.

Assuming the deal gets the necessary regulatory approval, it will be the largest single-bank takeover financing in history. Although there have been bigger financings in the past, these are typically handled by a syndicate of banks operating together.

The dismal home sales numbers released Monday morning are the latest to illustrate a developing disconnect between consumer sentiment and behavior, on the one hand, and between business plans, on the other.

The Treasury Department’s move to start unloading its portfolio of mortgage debt likely will add one more point of pressure—albeit a small one—to a housing market hardly in a position for additional stress.

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Foreclosure

Later this month the government plans to shed about $10 billion in its $142 billion portfolio of mortgage-backed securities that were guaranteed by government-sponsored enterprises Fannie Mae and Freddie Mac. The sales then will happen incrementally over the next year or so.

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